Correlation Between Wuhan Hvsen and Shanghai Rightongene
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and Shanghai Rightongene Biotechnology, you can compare the effects of market volatilities on Wuhan Hvsen and Shanghai Rightongene and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Wuhan Hvsen with a short position of Shanghai Rightongene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and Shanghai Rightongene.
Diversification Opportunities for Wuhan Hvsen and Shanghai Rightongene
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wuhan and Shanghai is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and Shanghai Rightongene Biotechno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rightongene and Wuhan Hvsen is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Wuhan Hvsen Biotechnology are associated (or correlated) with Shanghai Rightongene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rightongene has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and Shanghai Rightongene go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and Shanghai Rightongene
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to generate 0.84 times more return on investment than Shanghai Rightongene. However, Wuhan Hvsen Biotechnology is 1.18 times less risky than Shanghai Rightongene. It trades about -0.05 of its potential returns per unit of risk. Shanghai Rightongene Biotechnology is currently generating about -0.04 per unit of risk. If you would invest 2,068 in Wuhan Hvsen Biotechnology on October 13, 2024 and sell it today you would lose (1,151) from holding Wuhan Hvsen Biotechnology or give up 55.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Hvsen Biotechnology vs. Shanghai Rightongene Biotechno
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| Shanghai Rightongene |
Wuhan Hvsen and Shanghai Rightongene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and Shanghai Rightongene
The main advantage of trading using opposite Wuhan Hvsen and Shanghai Rightongene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, Shanghai Rightongene can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Shanghai Rightongene will offset losses from the drop in Shanghai Rightongene's long position.| Wuhan Hvsen vs. XinJiang GuoTong Pipeline | Wuhan Hvsen vs. CITIC Metal Co | Wuhan Hvsen vs. YiDong Electronics Technology | Wuhan Hvsen vs. TongFu Microelectronics Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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